Term
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Definition
| The practice of planning, structuring, leading and controlling organizations |
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Term
| The Congruence Model (Nadler & Tushman) |
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Definition
Input: (Environment, Resources, History)
Strategy:
Transformation Process: (Informal, Work, People, Formal)
Output: (Organization, Group, Individual)
Organizations are open systems (interacts with environment, draws input from external sources, transforms it into some form of output) |
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Term
| Four Components of the Transformation Process |
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Definition
1. Formal organization (structure, rewards, control systems, codified)
2. Work (characteristics of jobs and how jobs relate to each other)
3. People (characteristics of members of the Organization like demography, personality, skills, motivation)
4. Informal organization (implicit, assumed aspects like culture, values, communication patterns) |
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Term
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Definition
| degree to which needs, demands, goals, objectives, structures of one component are consistent with those of the other |
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Term
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Definition
1) External Fit (between strategy and environment)
2) Internal Fit (between strategy and different elements of the transformation process) |
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Term
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Definition
ICEAA
Internal dependence (changes in one component tends to yield changes in others), Capacity for feedback (availability of info and self-connecting), Equilibrium (systems work themselves back to balance in cases of deviation), Alternative Configurations (no absolute best way to structure...depends on context), Adaptation (capacity to constantly readjust to demands of environment) |
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Term
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Definition
1) Environment (technological, socio-political, economic, competitive)
2)Resources (tangible people plant money / intangible reputation knowledge)
3)History (past behavior, policies, performance)
HER |
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Term
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Definition
| Strengths, Weaknesses, Opportunities, Threats |
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Term
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Definition
DSPTEG (Don't sit, please try eating gouda)
Demographic, Sociocultural, Political/legal, Technological, Economic, Global |
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Term
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Definition
| Aging population, rising affluence, changes in ethnic composition, changes in geographic distribution, greater disparities in income levels) |
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Term
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Definition
| More women in the workforce, increase in temporary workers, greater concern for fitness, greater concern for environment, postponement of family formation) |
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Term
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Definition
| Tort reform, Americans with disabilities, deregulation, increase minimum wage, taxation, legislation |
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Term
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Definition
| Genetic engineering, emergence of internet technology, computer aided manufacturing CAD/CAM, pollution, miniaturization of computing technologies, wireless communications, nanotechnology) |
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Term
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Definition
| Interest rates, unemployment, consumer price index, GDP trends, stock market valuations |
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Term
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Definition
| Increasing global trade, currency exchange rates, emergence of Indian and Chinese economies, Trade agreements, WTO |
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Term
| The Competitive Environment |
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Definition
Competitors, Customers, Suppliers
& Five Forces Model |
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Term
| Porter's Five Forces Model |
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Definition
| Threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of new substitutes, rivalry among existing firms |
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Term
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Definition
| Threat is lower when barriers to entry are higher (economies of scale, product differentiation, brand identity, access to distribution channels, switching costs, capital requirements, absolute cost advantages, government policy, expected retaliation) |
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Term
| Bargaining power of Buyers |
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Definition
| Buyer concentration, buyer volume, buyer switching costs, buyer information, substitutes, price sensitivity, |
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Term
| Bargaining power of Suppliers |
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Definition
| Differentiation of inputs, switching costs, presence of substitute inputs, supplier concentration, cost, threat of vertical integration |
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Term
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Definition
| Relative price performance, switching costs, buyer propensity to substitute |
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Term
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Definition
| Number of competitors, Industry growth, costs value added, product differences, brand identity, switching costs, concentration and balance, informational complexity, diversity of competitors, corporate stakes, exit barriers |
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Term
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Definition
1) Organization (profit, sales, growth, resource utilization, flexibility)
2) Group level (innovation, efficiency, cohesion)
3) Individual level (satisfaction, productivity, learning, quality of work life, ethical behavior) |
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Term
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Definition
| Ends vs Means, Hard vs Soft, Long vs Short run, Absolute vs. Relative |
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Term
| How to set goals that motivate? |
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Definition
SAD FK
Specific, difficult, accepted, feedback |
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Term
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Definition
| financial measures, product quality, new product development, customer satisfaction, behaviors, employee turnover |
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Term
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Definition
profit ratios, grwoth in sales market share, cost ratios
-BUT not future oriented, may lead to inappropriate behaviors |
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Term
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Definition
| Stockholders, managers, employees, customers, suppliers, distributors, community, society, nation-state |
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Term
| Corporate Social Responsibility Approaches or Stakeholder Mgmt Strategies |
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Definition
| Obstructionist (behave unethically and illegally), Defensive (behave ethically to the degree that you stay within the law), Accomodative (behave legally and ethically and balance needs as they arise), Proactive (actively go out of their way to learn about needs of different stakeholder groups and utilize organizational resources to promote interests of all |
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Term
| Business Ethics '[code of] |
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Definition
| Provide standards or guidelines for the conduct and decision making of employees and managers |
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Term
| Four Ethical Rules for decision making |
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Definition
JUMP
Justice (distribute benefits and harm among people in a fair, equitable and impartial manner)
Utilitarian Rule (decision should produce the greatest good for the greatest number of people)
Moral Rights Rule (An ethical decision should maintain and protect the fundamental rights and privileges of people)
Practical Rule (decision should be one that a manager has no hesitation about communicating to people outside the company because an average societal person would agree it is acceptable) |
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Term
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Definition
| Front-page, Golden rule, personal gain |
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Term
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Definition
| Industry attractiveness and linkages across business....What business should we be in? |
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Term
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Definition
| Competitive advantage...How should we compete? which products to provide? Which markets to serve? Using what technologies? |
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Term
Overcome five forces: competitive advantage
Porter's "Generic Strategies" |
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Definition
| overall cost leadership (low-cost position relative to a firm's peers), differentiation (create products unique and for which customers will pay a premium), focus (narrow product lines, buyer segments, or targeted geographic markets) |
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Term
| Value chain: primary activities |
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Definition
IOOMS
Inbound logistics, operations, outbound logistics, marketing/sales, Service |
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Term
| Value chain: support activities |
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Definition
| Firm infrastructure, Human resource mgmt, technology development, procurement |
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Term
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Definition
| Introduction, Growth, Maturity, Decline |
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Term
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Definition
| Share tangible and intangible resources (manufacturing facilities, skills, patents, production facilities, distribution channels, favorable reputation |
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Term
| Unrelated diversification |
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Definition
| Value created is from corporate office, leverages support activities |
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Term
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Definition
| cost savings/revenue increases from a) leveraging core competencies or b) sharing related activities among business in the corporation |
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Term
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Definition
| something the firm is good at, not easily imitated by substitutes or competitors |
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Term
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Definition
| common manufacturing activities across business units, distribution channels, sales force |
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Term
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Definition
| pooled negotiating power, vertical integration |
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Term
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Definition
| diversification along the value chain, backward/upstream to raw materials from manufacturing...forward/downstream to distribution from manufacturing |
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Term
| Benefits of vertical integration |
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Definition
| secure source of supply of raw materials/dist. channels, protection and control over assets, access to new business opportunities and technologies, simplified procurement and admin procedures |
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Term
| Risks of vertical integration |
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Definition
| Expenses associated with increased overhead and capital expenditures, loss of flexibility resulting from inability to respond quickly to changes in environment, problems with unbalanced capacities or unfilled demand, additional admin costs |
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Term
| Transaction Cost Perspective |
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Definition
- Search costs, Negotiating costs, Costs of written contract, Monitoring costs, Enforcement costs
- Market transaction
Makes sense when market transaction costs exceed administrative costs of integration |
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Term
| Unrelated diversification |
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Definition
value creation derives from corporate office, leverages support activities
parenting, restructuring, financial synergies |
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Term
| Means to achieve diversification |
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Definition
1) Combining companies (M&As)
2) Pooling resources of other companies with a firm's own (Joint venture, strategic alliance)
3) internal development (new products, new markets, new technology) |
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Term
| Advantages of Strategic Alliances |
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Definition
| 1) Entering new markets 2) Reducing costs in value chain 3) Developing and diffusing new technology |
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Term
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Definition
| individual level. how do we divide tasks into jobs? (specialization v. “deskilling”) |
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Term
| formal structure “macro-level" |
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Definition
| how to get different parts to work together? how to create groups? |
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Term
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Definition
the degree to which workers/groups in the organization rely on each other to accomplish their own goals and the organization’s goals
Types: pooled, sequential, reciprocal |
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Term
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Definition
| bank tellers in a branch. each bank teller does exactly the same thing. manager has the same relationship with each of these tellers. tellers don’t need to talk to each other. throw in another teller and get an increase in productivity. |
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Term
| sequential interdependence |
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Definition
| each person has to coordinate with the person before them and the next person in the sequence. set sequence. manager’s job is to make sure that the flow happens smoothly. |
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Term
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Definition
| each group has to really work together, be constantly talking to each other, continuous and ongoing. manager’s role is to make sure everyone’s talking to each other and that everyone’s in the loop. |
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Term
| Purpose of a Job Analysis |
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Definition
identifying the tasks, duties, and responsibilities that make up a job (job description) and the knowledge, skills, and abilities needed to perform the job (job specifications).
designing selection systems, job training systems, performance appraisals. compliance with legal environment |
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Term
| Conducting a Job Analysis |
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Definition
interview people with the job
observe people doing the job
structured questionnaires/inventories
log or work diary
taxonomies, questionnaires, PAQ |
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Term
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Definition
division of labor, specialization, scientific management
Includes: Taylorism and Adam Smith |
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Term
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Definition
| specialized jobs, time and motion studies, match of people to jobs - coal and steel, call centers |
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Term
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Definition
SEE
job enlargement - increase # of tasks to reduce boredom, horizontal loading
job enrichment - more higher level jobs, increase degree of responsibility, vertical loading
job simplification - reduce # of tasks to specialize |
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Term
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Definition
employees use a wide range of skills
->suggestion actions: combining tasks, establishing client relationships |
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Term
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Definition
worker feels task is meaningful to the organization
->suggested actions: forming natural work units |
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Term
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Definition
worker is involved in all the tasks from from beginning to the end of the production process
->suggested actions: combining tasks, forming natural work units |
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Term
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Definition
employee has the freedom to schedule and accomplish tasks
->suggested actions: vertical loading, establishing client relationships |
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Term
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Definition
worker gets direct information about how well he/she has performed the job
->suggested actions: establishing client relationships, opening feedback channels |
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Term
| Factors Affecting Organizational Structure: Strategy |
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Definition
a. Differentiation strategy usually succeeds with flexible structure and innovation
b. Low cost strategy fares best in a more formal structure where managers have greater control over departments
c. Vertical integration or diversification succeeds with a flexible structure to provide coordination among different business divisions. |
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Term
| Factors Affecting Organizational Structure: Technology |
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Definition
a. The more complicated the technology, the greater the need for flexible structure and progressive culture to enhance managers’ ability to respond to unexpected situations and work out new solutions
c. What makes a technology routine or complicated?... Task variety (number of new problems that a person encounters in performing tasks) and task analyzability (degree to which programmed solutions are available to people to solve the problems they encounter)
d. Complicated technologies have high task variety and low task analyzability, like R&D in a laboratory |
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Term
| Factors Affecting Organizational Structure: Human Resources |
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Definition
| a. In general, the more highly skilled its workforce, and the greater the number of employees who work together in groups or teams, the more likely an organization is to use a flexible, decentralized structure and a professional culture based on values and norms that foster employee autonomy and self-control. |
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Term
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Definition
| Managers know best, people are motivated extrinsically ($$) |
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Term
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Definition
| stable, evaluative beliefs that guide our preferences for outcomes or courses of action in a variety of situations; conscious perceptions about what is good/bad, right/wrong |
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Term
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Definition
| values in the context of organizational culture; values that people within an organization or work unit have in common |
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Term
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Definition
| deeper element that some experts believe is the essence of corporate culture; non-conscious perceptions or ideal prototypes of behavior that are considered the correct way to think and act toward problems and opportunities; probably cannot be discovered through surveying employees, only by observing them |
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Term
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Definition
| values that leaders say they and their staff rely on to guide decisions and actions; leaders construct a positive public image by claiming to believe in values that are socially desirable |
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Term
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Definition
| values that leaders and employees truly rely on to guide their decisions and actions; become apparent by watching employees in action |
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Term
| The problem with Organizational culture models |
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Definition
| (1) they oversimplify the diversity of cultural values in organizations (2) organizational culture includes shared assumptions about the right way of doing things, not just shared values; few models take assumptions into account (3) they take an integration perspective |
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Term
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Definition
| the assumption that most organizations have a fairly clear, unified culture that is easily decipherable; asserts that culture is inherently measurable because nay ambiguity is outside the domain of the culture; also assumes that when culture changes, it shifts from one unified condition to a new unified condition with only temporary ambiguity or weakness during the transition; these assumptions are probably incorrect or, at best, oversimplified |
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Term
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Definition
| located throughout various divisions, geographic regions, occupational groups, etc.; can enhance the dominant culture, differ but not oppose the dominant culture, or even act as countercultures; serve two important functions: (1) maintain organization’s standards of performance and ethical behavior; even countercultures are an important of surveillance and critical review (2) spawning grounds for emerging values that keep the firm aligned with the needs of stakeholders (changing environment) |
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Term
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Definition
| embrace values or assumptions that directly oppose the dominant culture |
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Term
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Definition
| observable symbols and signs of culture (e.g., way visitors are greeted, physical layout, how employees are rewarded); provides valuable evidence about a company’s culture, as values and assumptions are harder to measure; the four broad categories of artifacts are organizational stories and legends, rituals and ceremonies, language, and physical structures and symbols |
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Term
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Definition
| programmed routines of daily organizational life that dramatize culture; include how visitors are greeted, how often senior executives visit subordinates, how people communicate, how much time employees take for lunch, etc. |
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Term
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Definition
| more formal artifacts than rituals; planned activities conducted specifically for the benefit of an audience; include publicly rewarding (or punishing) employees, celebrating the launch of a new product or contract, etc. |
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Term
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Definition
| how employees address coworkers, describe customers, express anger, greet stakeholders, etc. |
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Term
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Definition
| the size, shape, location, and age of buildings might suggest a company’s emphasis on teamwork, environmental friendliness, flexibility, or other values. |
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Term
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Definition
| range from desks and chairs to the art on the walls |
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Term
| Corporate culture strength |
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Definition
| how widely and deeply employees hold the company’s dominant values and assumptions; strong corporate cultures potentially increase companies’ success by service three important functions: control system, social glue, and sense making |
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Term
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Definition
| organizational culture is a deeply embedded form of social control that influences employee decisions and behavior |
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Term
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Definition
| organizational culture bonds people together and makes them feel part of the organizational experience; culture fulfills a need for social identity; important to attract new staff and retain top performers |
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Term
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Definition
| culture helps employees understand what goes on and why things happen in the company; culture also makes it easier for employees to understand what is expected of them |
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Term
| Contingencies of organizational culture and effectiveness |
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Definition
| (1) whether the culture content is aligned with the environment (2) whether the culture is not so strong that it becomes cult-like (3) whether the culture incorporates an adaptive culture |
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Term
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Definition
| exists when employees are receptive to change in the external environment and their roles within the firm |
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Term
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Definition
| way to minimize culture clash; diagnoses cultural relations between the companies and determines the extent to which cultural clashes will likely occur; the process involves identifying cultural differences, then common ground as a cultural foundation, and finding a way to bridge the two cultures with these in mind |
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Term
| Strategies for merging cultures |
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Definition
IDAS
assimilation, deculturation, integration, and separation |
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Term
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Definition
| occurs when employees at the acquired company willingly embrace the cultural values of the acquiring organization; works best when the acquired company has a weak, dysfunctional culture and the acquiring company’s culture is strong and aligned with the environment |
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Term
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Definition
| acquiring firm imposes its culture on an unwilling acquired firm; it rarely works because the acquired firm’s employees resist the cultural intrusions; it may be necessary only when acquired firm’s culture does not work but the employees do not realize it |
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Term
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Definition
| merging companies combine the two or more cultures into a new composite culture, preserving the best features from the previous cultures; it works best when the existing cultures can be improved and employees realize it; integration is slow and potentially risky because many forces preserve the existing cultures |
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Term
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Definition
| merging companies remain distinct entities with minimal exchange of culture or organizational practices; works best when firms operate successfully in different businesses requiring different cultures |
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Term
| Organizational socialization |
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Definition
| process by which individuals learn the values, expected behaviors, and social knowledge necessary to assume their roles in the organization; when employees are effectively socialized into the organization, they tend to perform better, have higher job satisfaction, and remain with the organization longer |
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Term
| Three stages of organizational socialization |
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Definition
| (1) pre-employment socialization (2) encounter (3) role management |
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Term
| Pre-employment socialization |
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Definition
| information search about the company, formation of expectations; encompasses all the learning and adjustment that occurs before the first day of work; main problem is that outsiders rely on indirect information |
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Term
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Definition
| begins with the first day on the job; newcomers test their prior expectations with the perceived realities |
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Term
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Definition
| most active as employees make the transition from newcomers to insiders; new employees strengthen relationships with coworkers and supervisors, practice new role behaviors, and adopt attitudes and values consistent with their new positions and the organization. |
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Term
| Realistic job preview (RJP) |
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Definition
| a method of improving organizational socialization in which job applicants are given a balance of positive and negative information about the job and work context; RJPs scare away some applicants but tend to reduce turnover and increase job performance; they allow employees to form more accurate expectations in pre-employment socialization and reduce reality shock |
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Term
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Definition
implicit, assumed, unwritten aspects of the organization
culture, norms, values, power, group dynamics, communication patterns |
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Term
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Definition
•Charismatic leaders/heroes (steve jobs)
•Ritual and ceremony
•Clear vision/direction
•Shared norms/values
Assets: Distinctiveness, identification, beyond self-interest, affects satisfaction commitment and perfomrance
Liabilities: Mergers/Aquisitions, Change, Diversity |
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Term
| Common Organizational Cultures |
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Definition
•Outcome Orientation (achievement, results & action oriented)
•Team Orientation (collaboration, team players)
•People Orientation (respect for individual, fairness, tolerance)
•Attention to Detail (analytical, precise, detail-oriented)
•Innovation (risk-taking, experimenting)
•Stability (security, predictability)
•Aggressiveness (competitive, aggressive) |
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Term
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Definition
High->Low Visibility
Artifacts (physical characteristics,Values (espoused and in-use), Assumptions |
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Term
| ASA - attraction, selection, attrition |
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Definition
attraction: people are attracted to organizations that they fit in
selection: organizations select individuals that hold the attributes they desire
attrition: any errors in the attraction-selection process will be corrected (hiring, firing, quitting) |
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Term
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Definition
normal ways of communicating the values/beliefs of organization: training
informal: after-work gatherings, social events
drive towards homogeneity - one time, powerful socialization•prearrival: learning that occurs before an individual joins an organization
•encounter: learns what the organization is really like, sees if expectations and reality diverge
•role mgmt/metamorphosis: changes and adjusts to work, work group, organization |
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Term
| Person-Organization Fit (Pros and Cons) |
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Definition
•Functions
–Conveys a sense of identity
–Facilitates commitment
–Enhances stability
–Serves as a control mechanism
•Dysfunctions
–Barrier to change
–Barrier to diversity |
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Term
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Definition
*Output control (financial measures of performance, organizational goals, operating budgets)
*Behavior control (Direct supervision, management by objectives, rules and standard operation procedures)
*Organizational culture/clan control (values, norms, socialization) |
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Term
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Definition
•Articulate a new vision & provide new role models
•Fill key positions with individuals who endorse new values and define goals & means to achieve them
•Modify performance evaluations to include behaviors consistent with new values
•Systematically reward behaviors consistent with new values and discourage adherence to the old system
•Destroy myths, artifacts & symbols supporting the old system – replace with new ones
•Modify structural arrangements to support cultural shift |
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Term
| Three types of relation networks |
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Definition
| Advice network, Trust network, Communications network |
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Term
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Definition
-on whom others depend to solve problems and provide technical solutions
1. Uncover the source of political conflicts and failure to achieve strategic objectives
2. Show influential players in day-to-day operations, examine when a company is considering routine changes |
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Term
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Definition
-which employees share delicate political information and back one another in a crisis
1. Reveal causes of nonroutine problems such as poor performance by temporary teams
2. Examine when implementing major change or experiencing crisis |
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Term
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Definition
-employees who talk about work-related matters on a regular basis
1. Identify gaps in information flow, inefficient use of resources, failure to generate new ideas
2. Examine when productivity is low |
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Term
| A Powerful System Network |
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Definition
Advantages
1. Private information
a. Value depends on how much trust exists in your network
2. Access to diverse skill sets
3. Power
a. Especially when corporate organization became flatter |
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Term
| Self-similarity principle |
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Definition
you tend to choose people who resemble you in terms of experience, training, worldview, etc.
1. Easier, more efficient to work with, affirm your point of view
2. Restricts your access to discrepant information, create social echo chambers |
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Term
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Definition
| populate networks with people they spend the most time with, e.g. colleagues |
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Term
| Shared Activities Principle |
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Definition
to break through barriers through high-stakes activities that connect you with diverse others. E.g. nonprofits, sports team
i. Interdependence
ii. Reliance on others builds trust
iii. Having something at stake provides opportunities for celebration/commiseration
iv. Bring together cross-section of disparate individuals around common interest =/= similar individuals with shared backgrounds |
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Term
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Definition
| set of relationships critical to your ability to get things done, get ahead, develop professionally, and enjoy yourself (social network) |
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Term
| intra-organizational network |
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Definition
| set of relationships among employees |
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Term
|
Definition
strong ties - close contacts, really wanted to help
weak ties - distant contacts, access to more diverse info, leads, etc.
weak ties tend to be outside your zone, more valuable |
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Term
|
Definition
Human Capital - your knowledge, skills, abilities and experiences
Social Capital - Resources you can access through your network of contacts |
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Term
|
Definition
| range of network - better range -> more innovation, more likely to be promoted |
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Term
| Leverage - Density of Network |
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Definition
•High density
–Redundant contacts provide support, identity, trust
•Low density
–Uzzi & Dunlap’s “superconnectors”
•Have non-redundant contacts (more efficient)
•Can access unique resources and information
–Six degrees of separation (kevin bacon) |
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Term
|
Definition
| foster cooperation within the group, helping with implementation |
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Term
|
Definition
| link groups and ideas, fostering innovation |
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Term
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Definition
| May fail to unlock the value of the human capital |
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Term
| Forms of intra-organizational networks |
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Definition
riendship, trust, knowledge, advice
shaped by: formal structure, informal culture, job design, people |
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Term
| Krackhardt & Hanson: Network Pathologies |
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Definition
•Imploded relationships (across groups)
•Irregular communication patterns (within groups)
•Fragile structures (variability across groups)
•Holes in the network (between groups)
•Bow ties (superconnectors) |
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Term
| Rewiring Organizational Networks |
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Definition
DMCLIT
•Cross-group teams/seminars/social events
•Job rotation
•Staff meetings
•Mentoring programs
•Information technology
•Restructuring |
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Term
| Types of Inter-Organizational Networks |
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Definition
Alliances and joint ventures
•Director interlocks (i.e. board memberships)
•Mobility of managers and employees
•Participation in industry-wide forums |
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Term
|
Definition
-explicit, codified structures and systems
-How to group jobs together to best match the needs of the organization's environment, strategy, technology, and human resources. |
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Term
|
Definition
-organizational chart
-an organizational structure composed of all the departments that an organization requires (manufacturing, sales, r&d, etc)
-Function: group of people, working together, who possess similar skills or use the same kind of knowledge, tools, or techniques to perform their jobs
-formalized patterns of interactions that link a firm’s people, tasks/jobs, technologies
provides the means of balancing conflicting demands for specialization and integration |
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Term
| Advantages of Functional Structure |
|
Definition
People with similar jobs can learn from observing each other and become more specialized
Encourages cooperation as function - job tasks are often related
Easier for managers to monitor and evaluate performance
Allows managers to create the set of functions they need to scan and monitor the competitive environment; good position to respond to changing situations
-centralized decision making, enhances coordination and control, more efficient use of technical and technological talent |
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Term
| Potential Problems of Functional Structure |
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Definition
Managers in different functions may find it more difficult to coordinate with each other when they are responsible for several different kinds of products
Functional managers may become so preoccupied with supervising their own specific departments that they lose sight of organizational goals and the organization will suffer
-narrow thinking, unable to establish uniform performance standards
Apple, Inc is functionally structured |
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Term
|
Definition
an organizational structure composed of separate business units within which are the functions that work together to produce a specific product for a specific customer
o Division: collection of functions or departments that work together to produce a product
o Goal: create smaller, more manageable units within the organization
-Ex: Google organized around products, geography or markets |
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divisions organized according to type of good or service they provide
Useful if managers decide to diversify into new industries or expand range of products |
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| Advantages of Product Structure |
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• Functional managers specialize in only one product area and can build expertise
• Divisional managers can become experts in their industry, easier to follow differentiation or low cost strategy at business level
• Corporate managers are free from supervising day-to-day operations and they can focus on corporate-level strategy |
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| divisions organized according to the area of country or world they operate in |
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| Global geographic structure |
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different divisions are located in each of the world regions where the organization operates
• Useful if needs of customers differ by region |
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each product division takes responsibility for deciding where to manufacture its products and how to market them in countries worldwide
• When customers are generally willing to buy the same kind of product
• Product division managers establish foreign subsidiaries for distribution and sales |
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divisions organized according to the type of customer they focus on
Allows managers to be responsive to the needs of their customers and respond to their changing needs |
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-top managers decide to move to a matrix structure to develop many new products simultaneously
-an organizational structure that simultaneously groups people and resources by function and by product. Most flexible structure.
o Combines advantages of functional and product structures
o Each person reports to two managers: 1) functional boss and 2) product team (divisional) boss. Known as "two-boss employees"
o Types of functional employees change with product need and managers mainly act as facilitators.
o Good for tech companies that need to innovate quickly.
-disadvantages - cause uncertainty and power struggles, working relationships are more complicated, delay in decision-making |
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an organizational structure in which employees are permanently assigned to a cross-functional team and report only to the product team manager or to one of his or her direct subordinates
o Cross functional team: a group of managers brought together from different departments to perform organizational tasks
o Differences from matrix: does away with two-boss system and functional employees are permanently assigned to a team
o Heads of functions have informal, advisory relationship with members of product teams |
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| power to hold people accountable for their actions and to make decisions concerning the use of organizational resources |
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| an organization's chain-of-command, specifying the relative authority of each manager |
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| number of subordinates who report directly to a manager |
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| someone in the direct line or chain of command who has formal authority over people and resources |
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| responsible for specialist functions (finance, hr) |
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many levels of authority relative to company size
Communication problems and slowed-down decision making may result
• Distortion of commands
Many levels of managers are expensive |
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fewer levels relative to company size
-have less levels of authority and wider span of control: quick communications, overworked managers |
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| giving lower-level managers and nonmanagerial employees the right to make important decisions about how to use organizational resources |
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| Advantages of decentralizing authority |
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• Minimizes problems of slow and distorted communication
• Fewer managers are needed
• Lower level decision making is closer to the customer and this leads to better responses to customer needs |
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| Disadvantages of decentralizing authority |
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• Divisions, functions, or teams may begin to pursue their own goals at the expense of organizational goals
• Can cause lack of communication among functions or divisions; prevents synergies of cooperation |
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| organizing tools that managers can use to increase communication and coordination among functions and divisions |
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-Assistant manager and prodcut team leader identify best product suggestions to put into development
-give one manager in each function the responsibility for coordinating with the other. Provide a way of transmitting information across an organization |
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-Representatives from marketing, research and development, and manufacturing meet to discuss launch of new product
-a committee of managers from various functions or divisions who meet to solve a specific, mutual problem, also called ad hoc committee
one manager from each relevant function or division is assigned to a task force that meets to solve a specific, mutual problem |
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-composed of all functions is formed to manage product to its launch in the market
-permanent integrating mechanism for issues that are recurring (ex: new product development team) |
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-senior managers provide members of cross-functional team with relevant information from other teams and from other divisions
-only function is to increase coordination and integration among functions or divisions to achieve performance gains from synergies
Usually experienced senior managers |
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| Control systems, reward systems, information systems, HRM systems |
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| Centralization v. decentralization |
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| top managers have more decision power in centralized, decentralized has more power in lower levels |
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| line manager v. staff manager |
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| line are primarily responsible for production of goods/services, staff are responsible for giving specialist advice to line managers |
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| Strategies and their structures |
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communications, overworked managers
cost leadership -> efficiency, taller, centralized
differentiation -> flexibility, decentralized, flatter
stable environment -> efficiency, taller, centralized
unstable environment -> flexibility, decentralized, flatter |
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-oldest, most common
-few people
-direct supervision
-staff = extension of executives
-little specialization, few rules and regulations, informal evaluation and reward
-highly informal |
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| Advantages and Disadvantages of Divisional structure |
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advantages - separation of strategic and operational control, quick response to important changes in the external environment, development of general talent is enhanced
disadvantages - can be expensive (duplication), dysfunctional competition among divisions, differences in image and quality may occur across divisions |
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| Integration from simple to complex |
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| Direct contact, liaison roles, task forces, cross-functional team, integrating roles and departments, matrix structures |
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| International Organizations |
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-international division
-geographic division
-worldwide functional division
-worldwide product division
-worldwide matrix |
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| In order size and sequence of structures |
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Slow the F Down Man
Simple, Functional, Divisional, Matrix |
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| Organizational Control and Reward Systems |
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-focus on key goals and objectives
-monitor and evaluate whether performing effectively
-reward (and punish) certain behaviors
-need to be congruent with structure |
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-financial measures of performance
-organizational goald
-operating budgets |
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-direct supervision
-management by objectives
-rules and standard operating procedures |
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| Organizational culture/clan control |
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| values, norms, socialization |
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intrinsic
extrinsic - formal, informal
sanctions - formal, informal |
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| Implementing control/reward system |
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1. Establish standards, goals, or targets
-managers at each level set goals or targets
-goals must be consistent with organization's strategy and structure
-beware the folly of rewarding A while hoping for B
2. Measure actual performance
-measure outputs resulting from behaviors or behaviors themselves
-the more non-routine the task, the harder it is to measure output
3. compare actual performance against chosen targets
4. evaluate result and take corrective action
-are targets set too high or too low?
-do workers need additional training? |
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-recruiting and selecting
-training and developing
-performance appraisal and feedback
-pay and benefits
-labor relations |
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when a person has the necessary knowledge,skills, and abilities to adequately perform it
2 ways: recruitment & selection, training, and development |
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| Cognitive intelligence tests |
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| general (strong predictor of job performance) or specific other aptitude/ ability tests |
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Simultaneous change in strategy, formal, work, people and informal components of the organization, type of evolution for organizations
Reasons: –Changing environments (external misfit)
–Performance problems |
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adeptness at solving problems in everyday life
Includes: tacit knowledge about how to do things |
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| ability to recognize and regulate our own emotions, to influence others, to self-motivate, to form and cultivate long-term relationships. |
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derived from job analysis
advantages: standardized questions to tap job dimensions, adequate validity
disadvantages: costly to develop, potential for biases |
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casual, informal conversations
advantages: interviewers can give info about the job, applicants are more comfortable
disadvantages: low validity, many biases person-organization fit, not person-job fit |
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| Organizations evolve through cycles of (2 types) |
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| convergence and reorientation |
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| Focusing on achieving internal fit leads to periods of stability |
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| Ambidextrous organizations |
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–Separate units
–Tight linkages at the senior level |
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| 3 Requirements for Ambidextrous Organizations |
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•ambidextrous organizations need ambidextrous senior teams and managers – execs who have the ability to understand and be sensitive to the needs of very different kinds of businesses.
•company’s senior team must be committed to operating ambidextrously even if its members aren’t ambidextrous themselves.
•a clear and compelling vision, relentlessly communicated by a company’s senior team, is crucial. |
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-validity and reliability
-fairness
-applicability
-cost effectiveness |
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| when the selection ratio for one group is less than 4/5ths of the selection ratio of another group |
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| Composition of organization: types of diversity |
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| surface-level characteristics: easily observable (sex, race, etc.) deep-level characteristics: underlying characteristics (personality, background, values, beliefs, attitudes) |
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| 3 Arguments of increasing diversity |
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-varied experiences of employees can improve decision-making
-can increase the retention of valued organizational members
-expected/required by other firms |
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| Biases in Performance Assessment |
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-“similar-to-me” or “homophily” bias: managers rate subordinates like them higher
-“halo” bias: rate subordinates with higher-status characteristics higher
went to wharton
-“salience effect”: rate more extremely when they don’t fit the stereotypical character of the role |
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| Expectancy: Perception about the extent to which effort will result in performance |
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| Instrumentality: perception about the extent to which performance will result in attending desired outcomes |
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| Expectancy Theory: Outcomes |
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| Valence: Desirability of the outcomes available |
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APA
Power, Affiliation, Achievement. Motivate people given what they care about. McClelland. |
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| desire to excel, prefer to work alone or with other high achievers, desire challenge/feedback, like moderate risk |
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| Desire to influence others, to persuade and prevail, concerned with winning arguments |
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| desire to be liked, sense of belonging and certainty, interpersonal relationships, teamwork |
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Adams. inputs->rewards, equality. relative to others.
focuses on people’s perceptions of fairness of outcomes in proportion to inputs
equity exists when your input/outcome ratio is the same as a referent’s ratio |
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| Worker contributes more inputs but also gets more outputs than referent |
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Worker contributes more inputs but also gets the same outputs as referent
- reduce input levels, seek a raise |
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worker contributes same inputs but also gets more outputs than referent
- change the referent (I do work as hard as the managers), change ratio perception (actually I do work really really hard; I deserve this) |
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| Motivate those high in need for achievement by |
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–Non-routine, challenging tasks with clear goals
–Prompt and frequent feedback
–Increasing responsibility |
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| Motivate those high in need for power by |
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–Allowing them to control and plan their work
–Giving them responsibility for whole task
–Allowing them influence in decision making |
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| Motivate those high in need for affiliation by |
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–Including them in team and collaborative efforts
–Providing support and recognition
–Encouraging them to develop and mentor others |
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used to ensure that organizational members develop the skills and abilities that will enable them to perform their jobs effectively in the present and in the future; compose an ongoing process – changes in technology and the environment, as well as in the organization's goals and strategies, require employees to learn new techniques and ways of working.
Training: teaching how to perform current job
Development: building knowledge and skills to take on new challenges |
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| performance appraisal and feedback |
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| serves two purposes – 1) serves as a control system - gives managers the information they need to make good HR decisions; 2) serves a developmental purpose for employees. |
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| Five major components in the human resource management system |
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| recruitment and seletion, training and development, appraisal and feedback, pay and benefits, and labor relations |
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| encompass the steps that managers take to develop and maintain good working relationships with the labor unions that may represent their employees' interests. |
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| outsourcing overseas, undertaken by over half of US companies |
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| advantages include having access to a potentially large applicant pool, being able to attract people who have the skills, knowledge, and abilities that an organization needs to achieve its goals, and being able to bring in newcomers who may have a fresh approach to problems and be up to date on the latest technology. Disadvantages include the relatively high costs of external recruitment, higher need for training, and uncertainty over whether new employees will actually perform well. |
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| done through lateral moves and promotions. Advantages include employees' familiarity with organization, prior experience and knowledge of the employee, and boost of motivation and morale for recruited employee, as well as others (shows the possibility of promotion or lateral moves in the future). It is also less expensive and less time-consuming than external recruiting. Disadvantages include a limited talent pool and the tendency of current employees to be set in the organization's ways. |
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| Structured and Unstructured |
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-Paper and Pencil (ability and personality tests)
-Physical ability tests
-Performance tests (actual job tasks) |
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| Classroom instruction, on-the-job training |
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| managers asses subordinates on personal characteristics that are relevant to job performance, such as skills, abilities, or personality. There are three disadvantages: 1) possessing a certain personal characteristic does not mean it will be used on the job, 2) because traits are not directly linked to performance, workers and courts of law may view them as unfair and discriminatory, 3) they often do not enable managers to give feedback that employees can improve from. |
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| managers assess how workers perform their jobs; have the advantage of giving employees clear information about what they are doing right/wrong and how they can improve. |
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| Types of Performance Appraisals |
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FVISA
Feedback, Skill variety, Task identity, Task significance, Autonomy |
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resumes & biographical info
interviews and tests
work samples, assessment centers |
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